Clear Channel Seeks Amendment to Refinance LBO Debt

Feb. 7 (Bloomberg) -- Clear Channel Communications Inc.,
the media company taken private by Bain Capital LLC and Thomas
H. Lee Partners LP in 2008, is seeking to change its loan terms
as part of an effort to push out maturities on some of its $20.6
billion of debt.

The company plans to amend its credit agreement to delay
maturities on borrowings and get permission to sell $750 million
of bonds due 2021 to repay $500 million of loans, San Antonio-based Clear Channel said today in a statement distributed by
Business Wire.

Clear Channel, which was taken private in a $17.9 billion
leveraged buyout, may seek to take advantage of the “strong”
high-yield bond and leveraged loan markets, Barclays Capital
analysts Andrew Finkelstein and Michael Sanchez wrote in a note
to clients before the announcement . The company, with $867.7
million of debt maturing this year, said Dec. 24 that it’s
“exploring a diverse array of alternatives in an effort to
optimize its overall capital structure.”

Some Clear Channels lenders agreed to approve the proposed
changes, which require the consent of a majority of the
investors in the company’s credit facilities, according to the
statement. The amendment is contingent on Clear Channel repaying
borrowings under its $14.1 billion senior secured credit
facility.

The company’s $250 million of 5.5 percent notes due
December 2016 climbed 4 cents to 78 cents on the dollar at 5:06
p.m. in New York, Trace, the bond-price reporting system of the
Financial Industry Regulatory Authority.

Clear Channel’s $10.7 billion term loan rose 0.9 cent to
93.3 cents on the dollar as of 5:02 p.m. in New York, according
to information provider Markit Group Ltd. The company owed $9.06
billion on the debt due January 2016, according to data compiled
by Bloomberg.